US statutory requirements put EU re/insurers at disadvantage

European re/insurers are at a competitive disadvantage when writing risks in the US due to the “highly discriminatory” collateral requirements, said Insurance Europe ahead of further negotiations between the EU and US on a bilateral agreement on re/insurance.

Cristina Mihai, head of international affairs and investments at Insurance Europe, said: “Insurance Europe reaffirms its support for a swift conclusion to the negotiations, which should lead to a national uniform treatment of all European (re)insurers placing business in the US.

“The current US statutory collateral requirements are highly discriminatory and place European cross-border re/insurers at a significant competitive disadvantage when writing risks in the US.

“A bilateral agreement between the EU and the US should therefore seek the total elimination of statutory collateral requirements in all US states, and should apply to both in-force and new business.”